Cash & Kinds recieved from Company for Higher Turnovers
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 March 2011
Whether Cash & kinds received from any company for higher turnovers of their product is treated as income?
What is the Taxability of the Same?
Please Explain on this.
Eg. Mr. X received for higher turnover of goods, a sum of Rs. 75000/- and 2 Laptops worth 90000/-
Then what would be the treatment n the books and then the taxability?
What is the Taxability of the Same?
Please Explain on this.
Eg. Mr. X received for higher turnover of goods, a sum of Rs. 75000/- and 2 Laptops worth 90000/-
Then what would be the treatment n the books and then the taxability?
CA PARAS BAFNA
(Expert)
06 March 2011
Yes it will be treated as income.
The company will debit the Expenditure under the head salaries or commission to employees.
Lap Top may be given as gift but company can allow him to use the laptops by keeping the ownership of the company itself as it can claim depreciation on it. Employee will be benefited by its exclusive use, as the same will not be added as perquisites.
In the given case if Company shows gift of lap tops to the employee, employee can avail deduction of Rs 5000/. Balance 65000/ will be added to his perks.
The company will debit the Expenditure under the head salaries or commission to employees.
Lap Top may be given as gift but company can allow him to use the laptops by keeping the ownership of the company itself as it can claim depreciation on it. Employee will be benefited by its exclusive use, as the same will not be added as perquisites.
In the given case if Company shows gift of lap tops to the employee, employee can avail deduction of Rs 5000/. Balance 65000/ will be added to his perks.
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